In fact, they’ve become more averse to taking risks than they have been in seven years.

This news comes from a monthly attitude survey taken by Merrill Lynch which concluded that one-third of its 190-member panel have bought hedges against the risk of further stock market drops, reports Mark Cobley for Financial News.

Equity managers are also taking their money out of the stock market and holding it in cash while they wait for the storm to pass.

More then 25% of investors also now believe a recession is highly likely to occur, up 19% since January and three times as much since October 2007.

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